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Monday, December 13, 1999:

Canadian Aerospace Group and Sikorsky Aircraft Team in Portugal Military Bid

BURLINGTON, Ontario, Canada ( Canadian Aerospace Group Press Release ) - Canadian Aerospace Group International Inc. announced today that its relationship with Sikorsky Aircraft Corporation, a United Technologies Company is continuing to expand with their recent teaming effort to compete for military aircraft sales in Portugal.

As part of Sikorsky's efforts to sell up to twelve new S-92 Helicopters to the Portuguese Air Force, CASG is playing a key support role for Sikorsky by offering a program to establish a co-production and support operation in Portugal for the Monitor Jet as part of the Sikorsky Industrial Benefits (offset) package. The Monitor Jet is also being offered to the Portuguese Air Force to replace their current fleet of Alpha Jet training aircraft. The jet trainer program requires up to fifty Monitor Jets, valued at over US $200 million. The CASG/Sikorsky Proposal, for twelve S-92 helicopters and up to fifty Monitor Jets was submitted to the Portuguese Government at the end of October 1999.

The two seat Monitor lightweight training aeroplane is considered an ideal low cost replacement for existing fleets of aging jets. In addition to the aircraft, the partners have proposed to add significant enhanced value to the proposal through the transfer of technology, co-production opportunities, and final assembly, repair and overhaul potential to OGMA, the Government owned major aerospace corporation in Lisbon.

The Teaming Agreement between the parties entails the provision to CASG of financial, technical, production and marketing assistance worldwide from Sikorsky for the various CASG products. In return CASG provides support to Sikorsky for their helicopter sales where possible through technology transfer and job creation.

The Monitor military aircraft is a low cost pilot proficiency, threat simulation, electronic counter measures and counter insurgency platform to be powered by a Pratt & Whitney Canada turbofan in the 3000 to 4500 lb. thrust category, depending on customer requirement. PWC is a sister company to Sikorsky Aircraft and is one of the world's leading manufacturers of dependable military and commercial aircraft powerplants.

Canadian Aerospace Group is also pleased to announce the appointment of ATOMEX S.A. as their direct agent in Portugal and certain territories in North Africa. ATOMEX S.A. is a long standing supplier of aviation products, operates a fleet of transport aircaft, and is the appointed agent for Lockheed Martin for the region.

For additional information concerning Canadian Aerospace Group International please visit the company web page at www.canaero.com

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